Use the Figure for the Question(s)below

question 47

Multiple Choice

Use the figure for the question(s) below.Consider the following graph of the security market line:
-Portfolio "D":

• A)falls below the SML.
• B)has a negative alpha.
• C)is overpriced.
• D)offers an expected return equal to the risk-free rate.

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Definitions:

Perceived Behavioral Control

An individual's belief in their capacity to execute behaviors necessary to produce specific performance attainments.

Theory of Planned Behavior

A psychological theory that links beliefs and behavior, suggesting that an individual's intention to engage in a behavior is the principal determinant of whether they will do so, influenced by attitudes, subjective norms, and perceived behavioral control.

Dissonance Theory

A psychological theory suggesting that inconsistency among beliefs, attitudes, or behaviors causes discomfort, leading individuals to change them to reduce the discomfort.

Psychological Inconsistency

A state where an individual's thoughts, feelings, and behaviors do not align, leading to internal conflict.